ProsperUs Detroit, a nonprofit Community Development Financial Institution (CDFI), is spearheading a new initiative aimed at strengthening Wayne County’s small business ecosystem. Partnering with the Community Reinvestment Fund, USA (CRF), and funded by a grant from the CDFI Fund’s CDFI Equitable Recovery Program (CDFI ERP), this initiative introduces a specialized loan program for microenterprises within select zip codes across the county.
The program offers loans between $10,000 and $50,000, featuring a 12-month interest-only period and the possibility of up to 20% loan forgiveness. To qualify for forgiveness, businesses must meet specific criteria, including staying current on their interest payments and completing a ProsperUs Detroit educational curriculum within the first year.
With an infusion of $1.5 million, the loan program is set to benefit numerous small businesses across Wayne County, fostering economic resilience and long-term sustainability for local entrepreneurs. The program aims to spur growth in communities that were disproportionately affected by the economic fallout from the COVID-19 pandemic.
“CRF’s commitment to distributing patient and flexible capital to under-resourced communities in Wayne County is transformative. With their support, ProsperUs Detroit is empowered to ignite economic vitality in areas long overlooked. Together, we’re not just building businesses; we’re constructing pathways to prosperity and sustainable growth, one entrepreneur at a time,” said Paul Jones, CEO of ProsperUs Detroit.
Supporting Economic Recovery with Flexible Terms
The loan program’s flexible terms are designed to cater to the unique needs of microenterprises. Featuring a fixed 7% interest rate, the loan provides accessible financing options for businesses operating in low- to moderate-income communities. Additionally, no minimum credit score or collateral is required, further reducing barriers to capital access. Loan proceeds can be used for various business needs, including working capital, debt refinancing, inventory purchases, and marketing efforts.
Since the program’s launch in May 2024, it has already made a significant impact, providing much-needed funding to businesses like Miss Eva’s Detroit, a luxury speakeasy set to open in the Grandmont Rosedale neighborhood in September 2024.
“Working with ProsperUs Detroit has been transformative for me and my business, Miss Eva’s Detroit,” said Jay Williams, owner of Miss Eva’s. “The loan process was smooth, and the potential for loan forgiveness after twelve months of on-time payments makes the capital even more affordable. ProsperUs sees beyond the numbers and truly understands who I am as an entrepreneur. The additional support, from technical assistance to on-site consultations, has been invaluable.”
A Collaborative Effort for Lasting Impact
The partnership between ProsperUs Detroit and CRF emphasizes the importance of collaboration in fostering community development.
“CRF is proud to partner with ProsperUs Detroit on this impactful initiative as part of our mutual commitment to Wayne County communities,” said Alexis Dishman, Senior Vice President and Small Business Chief Lending Officer at CRF. “This innovative partnership utilizes the strengths of each organization to increase access to flexible capital and specialized services for local entrepreneurs, helping them grow, thrive, and create lasting impact in the communities they serve.”
Wayne County small businesses interested in learning more about the loan program and eligibility requirements are encouraged to visit the ProsperUs Detroit website for further information.
For more details and to begin the application process, visit ProsperUs Detroit.
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